There are many different approaches that are taken to boost Forex Trading. Not all are successful but there are many that are.
It is in the best interest of the economy when financial institutions promote trading. A successful hedging programme like the one conducted by the Bank Negara is proof of this.
Investors play an important role in the economy and this hedging scheme was scaled up so it could meet their needs. In all there were 105 that participated by registering for the Bank Negara Malaysia hedge fund scheme. For those who want to learn more about Forex, there are excellent resources like FxExplained Malaysia that serves those who want more knowledge on this topic.
Throughout the process of this hedge scheme, there were several revisions that were implemented. One was the introduction of the option for those who were investing to participate in forward contracts. These were applicable to the buying of Ringgit above the set 25% amount. This required the approval of the bank. In addition to this other measures were implemented that allowed for corporate flexibility. It meant that those who were investing were able to better manage the risks that come with foreign exchange.
Bank Negara Participation
This bank has a long history in its involvement with Forex trading. During this time they have changed their processes to adapt to the times. During the period of 1989 up to 1993, the Bank implemented two different approaches. One example was based on the decision by the Bank if a transaction was classified as trading then it was to be recorded in the Bank’s finances in the profit and loss sector. On the other hand, if the classification was Reserves Management then the recording was made in the reserve account for the Exchange Rate Fluctuation records.